Why Franchise?

Before we explore why franchising is so popular and the benefits franchising can offer you, lets consider what franchising is exactly.

A Business Concept Thats 150 Years Young

Legally defined, franchise has two meanings. It is the right granted by a company to a dealer, retailer or the like to sell a product or service in a specified territory.

The term can also mean refer to a contract, granted by a national or regional chain, that grants non-exclusive right to operate one of their outlets in a specified area, based on payment of an initial fee and/or a percentage of gross sales. Often times, the contract will specify that the parent company will support the operator by furnishing equipment, supplies, merchandising and promotional advertising.

More Than $1 Trillion in Revenue Every Year

Franchising is not a business or an industry, per se. Instead, it is a method of conducting business.

Franchising began in the 1860s, when the Singer Sewing Machine Company first used independent owner-operators to market its line of equipment. Not too long after, auto manufacturers began selling their vehicles through franchised outlets. Next came petroleum companies, soft drink companies and others who recognized the good sense that franchising makes.

Today, the 500,000 franchise outlets in the USA account for one-third of all retail sales and servicestogether generating a total of more that $1 trillion in revenue annually.

What This Means to You as a Franchisor and a Franchisee

Starting a franchise is an exciting opportunity for you to grow your company with numerous benefits to your business. Our franchise consultants can help you start a franchise concept based on your goals and expectations.

Buying a franchise and becoming an independent owner-operator also has many benefits for the entrepreneur. Our franchise consulting and acquisition services have helped franchisees make the right business decisions leading to franchise success.